Shares in Scottish energy giant Wood Group climbed yesterday as it revealed a boost to its production services arm from the US shale gas market.
The firm said its PSN division had delivered EBITA (earnings before interest, taxation and amortisation) growth of 47% in the six months to June 30.
The performance was underpinned by its shale gas operations in America and its “robust” North Sea business.
The company hailed the contribution from its twin purchases last year of Elkhorn in the US and Gateshead-based Pyeroy for helping to progress the PSN business.
However, the Wood Engineering division saw EBITA fall 9% in the first half of the year as income from the firm’s Upstream operation fell back.
This was only partially offset by a good performance from its subsea, pipelines and downstream business.
Earnings in the company’s joint venture turbine operations were at break-even level in the half-year.
“Overall, the outlook for the group for the year remains unchanged,” chief executive Bob Keiller said.
“We continue to anticipate full year EBITA to be in line with expectations and up on 2013, led by growth in PSN Production Services,” he added.
Shares in Wood Group closed the day up 5%, or 37p, at 788.5p.